Billionaire Elon Musk's X, the social media formerly known as Twitter, is facing 2,200 arbitration claims from ex-employees since Mr. Musk took over the company and fired most of its workforce. The filing fees alone for that volume of cases could amount to $3.5 million.
The lawsuit was filed in a Delaware district court, according to CNBC. The case is Chris Woodfield v. Twitter, X Corp. and Elon Musk (No. 1:23-cv-780-CFC).
A former employee, Woodfield, a former senior staff network engineer who had worked at Twitter's Seattle office in his suit said that Twitter had promised then failed to pay his severance, and later delayed alternative dispute resolution by failing to pay the necessary fees required for him to move ahead in the JAMS arbitration system, CNBC reported.
According to the website for JAMS, "For two-party matters, the Filing Fee is $2,000," and "For matters based on a clause or agreement that is required as a condition of employment, the employee is only required to pay $400."
Since JAMS decided that this basic fee applies across the board to X's 2,200 arbitration cases, that would amount to around $3.5 million, with other fees possibly to follow.
However, the company's lawyers have argued that it did not mandate its employees to resolve any issues in arbitration, so it should not be on the hook for the larger portion of the filing fees.
Meanwhile, Mr. Woodfield and others in a similar situation are trying to get out of arbitration and move their cases to trial.
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